PPOR converted to rental property, drops in value from time of conversion

I have the following scenario and want to work out if I have a claimable capital loss against my taxible income, and how it gets applied.

I had a PPOR that was converted to a rental property after living there for three years. Purchase price was $1million. At the time it was rented out for the first time, the market valuation was $1.65million. We rented it out for a year and then sold it for $1.410million.

Is there a capital loss here from the time it was first used as an investment at $1.65million, or is the original purchase price when it was a PPOR used ($1million).

Also, if there is a capital loss, how is this applied to my taxible income?